DOL Proposed Regulations on the Definition of Fiduciary

The U.S. Department of Labor (DOL) has issued proposed regulations expanding the definition of “fiduciary” and actions that are potentially subject to fiduciary duties under ERISA and the prohibited transaction rules of the Internal Revenue Code.  Distributions and IRA rollovers advice would be added to the list of things subject to fiduciary duties.  The DOL is aware that many companies tend to steer people to one IRA custodian.  ESOP annual valuations would be exempt.  Proposed regulations are not law, and government agencies have (particularly in recent years) a track record of expanding power beyond the authority granted by Congress.  It is very possible that the proposed new definition goes beyond statutory authority.  In this regard, I believe it does go beyond statutory authority with respect to distributions and IRA rollover advice.  I have sent a comment letter to the DOL that so states.